The launch of Apple's iPhone is just days away and people
are already
starting to camp out for the next "it" device. Close to 400,000 units
could be up for grabs on launch day from 162 Apple Store and roughly 1,800
AT&T locations.

Today, Apple and AT&T announced three rate plans
that will be available for the iPhone.

"We want to make choosing a service plan simple and
easy, so every plan includes unlimited data with direct Internet access, along
with Visual Voicemail and a host of other goodies," said Apple CEO Steve
Jobs. "We think these three plans give customers the flexibility to
experience all of iPhone’s revolutionary features at affordable and competitive
prices."

The entry-level $59.99 plan will get you 450 anytime minutes
along with 5,000 nights and weekend minutes. Stepping up to the $79.99 plan
will get you 900 anytime minutes and unlimited nights and weekends. The
top-level $99 plan gets you 1350 anytime minutes and unlimited nights and
weekends.

Also noted in the press release is that a one-time
activation fee of $36 will be charged for the iPhone. Given the extremely high interest
level for the iPhone, it's likely that not many will bat an eye at the
charge which would usually irritate consumers.

In addition, Apple and AT&T also announced that new
iPhone users will be able to activate their phone through iTunes -- there is no
need to wait at the store to go through the activation process.

"Users will be able to activate their new iPhone in the
comfort and privacy of their own home or office, without having to wait in a
store while their phone is activated," said Jobs. "There are tens of
millions of people in the US who already know how to sync their iPods with
iTunes, and syncing their new iPhone with iTunes works the same way."

"iPhone’s user-driven activation is another example of
how AT&T and Apple have partnered to bring innovative new features to our
customers," said AT&T chairman and CEO Randall Stephenson.
"iPhone’s innovative activation and sync is just one example of how this
is going to be a real industry game-changer."

1) It's probably a good thing then that Apple doesn't compete on features but instead on UI and user experience (see the iPod for an example)2) Name another company that was able to release something competitive to the iPod within a year of an iPod before Apple released a newer, cooler iPod! All of Creative's stuff was released, at the earliest, 9 months after Apple, and in the case of their big guns, over a year later. So if Apple has a year's head start with the iPhone, they will be able to release a cheaper, cooler, and nicer one by this time next year when the competition will be able to release something competitive to v1 iPhone

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA